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Exercise 8-12 The Cycle Division of Ayala Company has the following per unit data related to its most recent cycle called Roadbuster. Selling price $2,210

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Exercise 8-12 The Cycle Division of Ayala Company has the following per unit data related to its most recent cycle called Roadbuster. Selling price $2,210 Variable cost of goods sold Body frame $305 Other variable costs 904 1,209 Contribution margin $1,001 Presently, the Cycle Division buys its body frames from an outside supplier. However Ayala has another division, FrameBody, that makes body frames for other cycle companies. The Cycle Division believes that FrameBody's product is suitable for its new Roadbuster cycle. Presently, FrameBody sells its frames for $352 per frame. The variable cost for FrameBody is $262. The Cycle Division is willing to pay $275 to purchase the frames from FrameBody. Your answer is partially correct. Try again. Assume that FrameBody has excess capacity and is able to meet all of the Cycle Division's needs. If the Cycle Division buys 1,050 frames from FrameBody, determine the following: (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) (1) Effect on the income of the Cycle Division 1 13650 (2) Effect on the income of FrameBody 31500 (3) Effect on the income of Ayala 45150 Your answer is partially correct. Try again. Assume that FrameBody does not have excess capacity and therefore would lose sales if the frames were sold to the Cycle Division. If the Cycle Division buys 1,050 frames from FrameBody, determine the following: (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) (1) Effect on income of the Cycle Division 31500 (2) Effect on the income of FrameBody (94487000) (3) Effect on income of Ayala 76650

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